Commercial Real Estate: 2025 Trends and Predictions

New York Real Estate Practice Group Leader Stuart Saft was featured in a Q&A with Thomson Reuters on notable trends shaping the commercial real estate market. Practitioners interviewed highlighted major developments in 2024, such as the recovery of the office leasing market and an uptick in conversions of office space for retail and residential use. Mr. Saft predicted a continued focus on converting commercial buildings to residential or mixed-use spaces, adding that he also thinks malls will experience a resurgence in popularity.

"Now that we are years beyond the pandemic, I believe there will be a renaissance of the malls that fell out of favor because shoppers got used to shopping on the internet during the pandemic," he said. "I can see that customers will return to the malls as a way to see and touch goods before they purchase them, and because returning merchandise to Amazon and other online retailers has become so complicated. The easy online return no longer exists. The mall is a good place to spend family time and is also an entertainment center."

He additionally shared insights specifically on the New York real estate sector, commenting that new mandates from state and local governments are complicating budgeting and planning for clients. However, he expressed optimism for the sector's overall outlook, pointing out that it has survived financial downturns, a pandemic, climate-related disasters and more and that the United States continues to represent a desired destination worldwide.

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